How Long Does a Wire Transfer Take After Closing?

Wire Transfers in Real Estate

A wire transfer is a method of payment that electronically transfers money from one bank to another. It is typically used for moving large sums of money, such as a down payment, because it is fast, secure, and traceable. 

Compared to other forms of payment, such as checks, the wire transfer process is favorable for large transactions. Nowadays, most home purchases involve the wire transfer network because it is the simplest way to involve the buyer, seller, banks, and lenders in one transaction. These transfers let the seller get money faster. 

Real Estate Transaction Closing Process and Wire Transfers

A real estate transaction can be a long and complex process. The homeowner may hire a real estate agent, list the home for sale, repair and clean the property, host showings, receive offers, negotiate those offers, and eventually accept the best one. Seller must remove their personal property and have their lawyer draft a legal document. 

Other steps must occur before the closing date arrives, the documents are signed, and the money is transferred. Learn more about what happens to your mortgage when you sell your house and buy another to plan your finances effectively during a sale. 

Here are some considerations for the wire transfer process when it is time to close the deal. It’s essential to consider these before closing day. 

The Role of Escrow and Title Companies

Unless you are paying the buyer directly with cash or a cashier’s check, multiple parties are involved in the transfer of funds, especially an escrow company and a title company. The buyer will fund the escrow account, which holds onto the money until certain conditions are met. 

Then, the escrow company will release the funds to the buyer. Setting up this third-party account will require working with an escrow agent. 

The title company also handles the funds to ensure a smooth closing day. This firm provides wiring instructions to all parties to facilitate the movement of funds. The company receives the money from the buyer and distributes it to the appropriate parties, such as the seller and lender. A closing agent then communicates with both banks to ensure the transaction goes smoothly. 

When Wire Transfers Typically Occur

The wire transfer typically occurs on the closing date. Once all closing documents have been signed and the parties have fulfilled their obligations for the sale, the transfer will be initiated on the same day. 

Factors Affecting Wire Transfer Timing

The timing of this stage of the closing process is important. With a wire transfer, a fast transaction is very doable. However, several factors will influence how long it takes for the transfer to be completed. Here are some considerations that will impact your transaction. 

Domestic vs. International Transfers

The typical timeframe for the seller and lender to receive payment during a wire transfer is a few days, but this will vary depending on the location of the banks. For example, if the seller’s bank account belongs to an overseas entity, the transfer could take up to five days. 

International transfers take a little longer than domestic transfers. If the buyer’s and seller’s banks are in the United States, it could take just one business day to see money after closing. The funds may be pending on closing day.

Sending and Receiving Banks

Individual banks will also affect the typical timeline. Some banks can process these large transfers very quickly, allowing the transaction to close within a day. However, some banks could have slower processing times, slightly delaying the sale. Most sending and receiving banks in real estate transactions only need a few days to process these requests. 

Cut-Off Times and Bank Holidays

Transferring funds depends on the practices of the banks involved. The seller may not get money immediately after closing if a bank holiday disrupts the transfer. Additionally, if the parties do not leave the closing table until later, the bank’s cutoff time for same-day transactions could delay the sale by a day. 

In general, banks cut off transactions for the day around 5 PM, so if you don’t have a closing meeting until late in the afternoon, you may miss that deadline and push the transfer back a day or two. 

Potential Delays and Holds

Other factors can affect when people get money after closing on home sales. Before the transfer is approved, the bank, escrow company, or title agent may conduct security checks. If incomplete information is provided, a closing agent or bank representative may hold up the sale. 

Issues with the buyer’s or seller’s bank accounts can also delay the selling process. In this case, the seller’s proceeds could take a while to appear in the bank account. Foreclosure sales may have unique challenges. Learn what happens in a foreclosure auction and how it impacts closing.

Typical Wire Transfer Timeframes

How long does a wire transfer take after closing on a real estate deal? The answer depends on the above factors, but you can generally count on reliable timeframes for domestic and international transfers. 

Domestic Wire Transfers

The average processing time for a domestic wire transfer is one business day. If all closing costs are addressed and legal documents signed before the bank’s cutoff time on a Monday, the transfer may be done by the end of the day on Tuesday. Variations may occur depending on bank processing times, delays, and incomplete information. 

International Wire Transfers

For an international wire transfer, you may have to wait up to five business days before the seller typically receives their money. However, this depends on which countries the banks are located in and what financial institutions are involved. International banks can normally process these transfers quickly. 

Tracking a Wire Transfer

One advantage of using a wire transfer to complete a real estate sale is that both parties can track the money. If the seller is nervous about how long it takes to receive their net proceeds, they can easily track the transaction’s status. 

Obtaining a Transaction Reference Number

Reference numbers play an essential role in tracking wire transfers. As the home seller, you can obtain your bank or escrow agent’s reference number. You can usually use this number to look up the transaction online. Since most institutions offer online banking, it is relatively simple to determine the status of your money with a reference number. 

Contacting the Sending and Receiving Banks

You can contact the sending or receiving bank directly if you prefer a straightforward approach to tracking the wired funds. For example, you may have already used the tracking number to determine the online status, but you think closing the sale is still taking longer than expected. If so, you can contact the buyer’s bank or your own to ask what is causing the holdup. 

It could be a simple matter of processing times, but it may also be caused by incomplete information or final loan approval issues. You may not find out for a while unless you contact the banks and ask. 

Reach Out to a Cash Home Buyer for Expedited Closings and Faster Payments

Buyers financing most real estate transactions can cause significant delays and concerns, even with a wire transfer. On the other hand, a cash house buyer can initiate faster sales because they keep funds on hand to purchase homes. 

At A-List Properties, our team can close a deal in 14 days or less once you accept our no-obligation cash offer. We cover all closing costs and include them in our offer, so you don’t have to worry about upfront costs. Additionally, you can leave your home as is and avoid investing in repairs to pass the home inspection.If you want a faster sale while avoiding certain closing costs and real estate agent commissions, call A-List Properties at 972-526-7042 or complete the online form to request a cash offer.